TORONTO, ONTARIO--(Marketwired - March 18, 2014) - SustainCo Inc. (the "Company" or "SustainCo") (TSX VENTURE:SMS), through its wholly owned Clean Energy Developments group, is pleased to announce that it has entered into an agreement with Cennatek Bioanaytical Services Inc. ("CENNATEK") to provide a loan instrument of up to $500,000 towards the development of its brand of BioLiNE® biomass projects. BioLiNE converts agricultural waste and marginal vegetation such as cattail into liquid fertilizer and high quality biomass fibre.
"This investment is more than securing access to capital; for CENNATEK it is about building a relationship with SustainCo, a management team that shares our vision, and has the knowledge and capacity necessary to facilitate the dissemination of our BioLiNE process," stressed Mohammad Rahbari, President of CENNATEK.
SustainCo secures several key conditions in the agreement, including providing SustainCo with a 5% earned equity interest in CENNATEK, as well as SustainCo securing the right of first refusal to provide development solutions and services that includes engineering, project management, comprehensive site energy work, and operations and maintenance work required for all of CENNATEK's projects. From a financing perspective, SustainCo secures an additional right of first refusal to invest in each project at project finance.
CENNATEK has an active list of BioLiNE biomass projects in development.
"This investment is our first step to becoming a vertically integrated leader in the full stage development of sustainable solutions. We believe that partnering with Cennatek, a group that shares our vision for sustainable development, creates a strong partnership for the long term development of biomass Facilities. For SustainCo we are deploying strategic capital that will lead to the future development of multiple biomass facilities where SustainCo can become the designer, developer, and long term servicer of these facilities through our Solutions and Services group," stated Emlyn David, CEO of SustainCo.
CENNATEK is a technology development company with primary focus on industrial applications for agricultural biomass including biofuels and bio-based specialty chemicals. The company has been in business since 2008, conducting its research and development at the Western Sarnia-Lambton Research Park laboratory facilities. CENNATEK developed the BioLiNE process to produce high value liquid fertilizers from low-cost, easily available agricultural residues at a fraction of the expense of conventional methods. The fiber remaining after mineral extraction makes an efficient fuel pellet able to meet EU industrial grade fuel pellet standards. Research and development for the BioLiNE is complete, with a process patent pending. CENNATEK is developing projects to utilize the BioLiNE technology.
About SustainCo Inc.
SustainCo is a leading provider of sustainable infrastructure solutions and services. SustainCo operates through its two groups, CleanEnergy Developments and SustainCo Solutions & Services.
CleanEnergy Developments is an early stage developer and investor in clean and renewable energy projects with experience in wind, solar, biomass, and thermal energy projects. CleanEnergy Developments provides strategic capital, funding management, and execution expertise.
SustainCo Solutions & Services provides comprehensive building performance services, incorporating full life cycle asset optimization, finance, design, build, operations and maintenance services for new build and retrofit facilities. Specifically, it provides: engineering services, building automation controls, performance monitoring, energy and lighting retrofits, mechanical and electrical installation and services, thermal energy systems, and operations and maintenance services for multi-residential and ICI facilities.
With headquarters in Toronto, SustainCo has offices across Canada including, Halifax, Montreal, Pembroke, Ottawa, Vaughan, Toronto, and Calgary. For more information, visit www.sustainco.ca.
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Forward-looking statements, specifically those concerning future performance and other statements that are not historical fact, are subject to certain risks and uncertainties, and actual results may differ materially from the Company's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by the Company with the TSX Venture Exchange (the "Exchange") and securities regulators. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Trading in the securities of the Company should be considered highly speculative. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
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